Benefit Module Chapter 3 Flashcards
All Benefit Plans share several common fields and attributes. Name 5
Benefit Provider
Benefit Plan Type - Health Care, Insurance, Retirement Savings
Coverage Type - Medical, Dental
Benefit Plan Name
Description
External Plan Description - URL
Group Policy Number
Participating Benefit Group
Worker Plan Eligibility (optional for all benefit plans. All employees in a benefit group might not be eligible for the plan. This eligibility rule provides the ability to filter out employees as ineligible for a specific plan).
Earnings and Deductions (pre and post tax cost)
There are three steps to setting up a benefit plan - Name them.
- Select the foundation component values that have already been created, such as provider and coverage type, Effective Date, Benefit Plan Type, Rate Type
- Select the common configuration options with the plan. Coverage Type, Benefit Plan Name, Benefit Group, Worker Plan Eligibility, Targets
- Set up and use the components that are unique to the benefit plan type. Individual Rates, Employee, Employer Cost, Provider ID, Classification
Health Care Benefit Plans have several unique configurable options including ….
Flat rate structure or calculated rates
The ability to specify a healthcare classification, require a primary physician id number, and include dependent eligibility rules
Benefit Plan - Flat or Calculated Rate - What is the difference?
As a healthcare plan is created the rate type needs to be selected. Flat rate- If a flat rate is entered, the rate information will be entered directly into the benefit plan page.
Calculated rate - Calculated rates are created separately using the ‘create health care rate’ task. Once it is created as a flat or calculated rate this cannot be changed on the plan.
Benefit Plan - Dependent Plan Eligibility
Optional for healthcare and insurance plans only. Applies eligibility rules to dependents ; both child and adult dependents.
Benefit Plan- Over-age Dependent Eligibility
Optional - Used in conjunction with the Fair Market Value per Dependent field. This allows you to set up the imputed income amount for dependents who are over-age in certain states but still qualify for coverage at a federal level.
Benefit Plan - Requires Provider ID checkbox
Select this box if an employee is required to enter a primary care physician’s provider ID as part of the enrollment process.
Auto Enroll checkbox
Select this checkbox to have eligible employees automatically enrolled in the benefit plan. On the enrollment pages, this election will default to Elect and will be ‘view only’. The enrollment cannot be changed.
High Deductible Health Plan checkbox
Select this checkbox if the plan is considered a high deductible health plan with the option of enrolling in a Health Savings Plan
Derive Coverage Targets checkbox
Select this checkbox if you wish to use derived coverage targets. It is not recommended to combine plans with and without derived targets in the same enrollment but it can be done.
Benefit Plan - Use individual rate checkbox
Select this checkbox if employee or employer cost can be overridden using the ‘Manage Individual Rate’ task. This is not available with the calculated rate health care plan.
Benefit Plan - Reset individual rates on Plan year begin
If individual rates need to be entered each year, instead of carrying forward, select this checkbox.
Three configuration options for the US affordable care act are ….
ACA Plan Funding Method, ACA Minimum Value coverage, ACA Minimum Essential Coverage
What does the dependent plan eligibility do?
It is used to establish dependent eligibility for health care and insurance benefit plans. It can be used for children and spouse. The fields available to use include age, full-time student, relationship or Workday ID.
What is a spousal surcharge?
The idea of a spousal surcharge comes from the need to identify employees who wish to cover their spouse for healthcare coverage, even though their spouse can enroll in their own coverage. Due to this double coverage option, if the spouse enrolls there would be an additional charge, or surcharge. This is only available as a flat rate value.
There is a checkbox in the dependent’s personal information that asks if the person is or could be enrolled elsewhere. If the checkbox is enabled and a date entered, the surcharge will be added to the employee’s health care cost. ‘Create Benefit Surcharge’ task - Now has tobacco use (2021)
Name the two types of Health Care rates.
- Flat 2. Calculated rates
When creating rates identify which healthcare coverage targets should be included.
Describe a Flat Health care rate
They are included in the structure of the benefit plan setup
Describe a Calculated rate
They are created outside the benefit plan and linked to the plan.
Workday enables you to define three types of health care rates. Name them.
- Based on flat amount - includes the ability to add demographic factors such as an employee’s age, tobacco use, length of service, and salary to vary the rate.
- Rates based on percentage of Salary - Can be used with demographic and includes the option of defining a minimum and maximum cost and rounding rules.
- Rates based on a percent of salary with flat amount - All the same options of percentage of salary with the addition of an added flat amount.
What does a rate band do?
These are used for healthcare rates and can include demographic factors such as age, salary, length of service as well as tobacco use.
In terms of a health care rate explain config options for dependents
Use employee or dependent age as of - Beginning of Plan year coverage begin coverage begin or plan year begin event date specific date salary
In terms of a health care rate explain config options for salary (salary source)
What compensation components will be used to define salary
Total base salary
Benefit Annualized rate or total base salary
Benefits annualized rate or compensation elements
Compensation elements
In terms of a health care rate explain config options for salary (calculate as of)
Defines salary as of a certain point in time
Beginning of Plan Year
Coverage Begin
Coverage Begin or Plan Year Begin - Used for new hire or newly enrolled
Event Date
Specific Date
Length of Service in months
Workday recommends creating a healthcare calculated rate over flat rates. Why?
This allows customers the flexibility to use a calculated rate in the future without requiring a new plan. Additionally healthcare calculated rates can be loaded using an EIB.
What are individual rates?
Rates for healthcare or insurance coverage are not always a calculation that can be configured in Workday. Some rates are established for individual employees and must be tracked.
When using individual rates you can either enter a default rate that can be overridden after enrollment or the rate can be left blank and entered later using the ‘Maintain Individual Rates’ Task
How would individual rates be set up?
When setting up a benefit plan, using the ‘create benefit plan’ task, there are two checkboxes that can be selected.
- Use individual rates: Once in use individual rates cannot be disabled on the benefit plan.
- Reset individual rates on plan year begin: Select the checkbox if a worker needs to have the individual rate determined each year. When they re-enroll, the system will set the rate back to zero. The ‘manage individual rate’ task is then used to repopulate the rate amount.
What is an HSA (Health Savings Account)?
It combines lower cost, high deductible health insurance plan with a tax favored savings account. It allows you to deposit money you save on premiums into your tax favored HSA and use these savings to pay your qualified healthcare expenses until you meet your deductible. Unlike flex spending accounts these roll over year after year and earn interest.
What are the steps to setting up an HSA?
- Select an effective date, provider, benefit plan type
- Select the coverage type, benefit plan name, Benefit group, Worker Plan Eligibility
- Enter HSA Coverage targets, Max contribution, minimum contribution, employer contribution
Name some fields in a health savings account benefit plan type
1. Do not calculate remaining pay periods 2, Maximum contribution 3. Minimum contribution 4. Employer contribution 5. Frequency
Where would you go to enable additional HSA coverage targets if you had a third level employer contribution
Edit Tenant Setup HCM - checkbox for an additional HSA coverage target
What are the steps to setting up a Spending Account?
- Select the provider, effective date, Benefit Plan Type
- Select the coverage type, benefit plan name, benefit group, worker plan eligibility
- Enter maximum contribution, minimum contribution, employer contribution and do not calculate remaining period (checkbox if required)
Spending Accounts - What does the do not calculate remaining pay periods do?
Leave the checkbox blank if you want to use the payroll period schedule to calculate the remaining pay periods during enrollment. The employees pay group frequency determines which period schedule is used.
Select the checkbox if you want the employee or administrator to manually enter the number of remaining pay periods during enrollment. If the event processed is an open enrollment, the system will look at the benefit group frequency to populate the number of pay periods. For all other events, the number of pay periods remaining filed will be left blank. The employee or an administrator would manually populate a value.
Spending accounts - maximum and minimum contribution - explain these two fields.
Maximum - This field limits the employee contribution amount to a maximum amount.
Minimum - This field limits the contribution to a minimum amount. This only applies to the employee contribution and does not include any employer contribution amount. An employee can elect coverage with a zero contribution amount as long as this field is left blank.
Spending accounts - Employer Contribution
The employer contribution amount uses the currency and frequency to determine how the contribution is made.
Spending accounts - Frequency and currency
This is used by the employee contribution field and is also related to the contribution maximum. It specifies what frequency the maximum is applied to. For example, a contribution maximum could be entered as a monthly max or an annual max. The contribution maximum applies to the sum of the employee contribution only.
Explain the retirement savings plans in Workday
Retirement savings plans, also known as defined contribution plans or deferred compensation plans, allow employees to set aside pre-tax as well as after - tax salary in an account to save or invest. When setting up a retirement saving plan, the first step is the same as most other types of benefits.
How is a retirement savings plan setup in Workday
- Select the effective as of date, provider and benefit plan type.
- Select the coverage type, benefit plan name, benefit group and worker plan eligibility
- Enter - auto enroll, employee contribution % min and max, employee contribution amount min and max, employer contribution %, and employer contribution amount.
Retirement Savings Plan- Currency and Frequency
The currency and frequency calculate the employee contribution, and only apply to flam amount contribution limits
Retirement Savings Plan - Employee Contribution
The employee contribution can be entered as a maximum percentage, maximum amount or both. A minimum percentage can also be set.
If your benefit plan allows employee contribution to be a percentage or a flat amount, you must enter a contribution percentage maximum and a contribution amount maximum. The employee will have the option to enter either a percentage or a flat amount during enrollment.
The same rules apply to the min and max. Enter an amount as well as a percentage min and depending on the employee contribution selected, the appropriate minimum will be used. It is also possible to not enter an employee contribution and have only an employer contribution.
Retirement Savings Plan - Employer Contribution
In addition to the employee contribution there is an ability to create an employer contribution as either a percentage of an employee’s salary or as a flat amount. The employer contribution can be passed to a payroll interface for integrations with third party payroll systems as well as workday payroll.
Retirement Savings Plan - Employer Match
Although there is no employer match within the set up of the retirement savings benefit plan, there is an ability to create an employer match within the Workday Payroll deduction that is associated with the plan. Note: A deduction can be set up to use the employee’s deduction calculation to determine the employer’s match amount. this is not available tor payroll interface.
Describe the process for retirement savings plans across multiple providers.
Retirement savings plans may need to allow an employee to allocate their contributions to more than one plan of the same coverage type, and can also be used for the employer contributions. By configuring ‘Maintain Retirement Savings Allocation Across multiple providers’ and the employee contribution and /or employer contributions section, the system will enable the allocation and trigger the use of a section on the retirement savings enrollment form during an enrollment event.
Maintain Retirement Savings Allocation Across Multiple providers - contribution restricted to whole numbers
Select this checkbox to define whether an employee’s contribution must be entered in whole numbers and not decimals.
Maintain Retirement Savings Allocation Across Multiple providers - Employer contribution allocation rules (two options)
Employees can allocate only if they do not contribute to any plans. The employer allocation field on the enrollment page will be available to enter a value only if the employee is not contributing to any plan within the coverage type.
Employee can always allocate. The employer allocation field on the enrollment page is available to enter a value.
